Mine operates as you described except whenever you touch the jog knob (large ring), my player goes into FFW/RWD immediatley. Even a quick twist puts it in FFW/RWD mode, which may explain why Ive had to resort to Hijack configs to get it work correctly.

Can you verify that the horizontal rectangle button on the back (Assuming right side mount) doesn't do anything?

Maybe I have a bad stalk.